Khosla Ventures investing in Nu-Tek

MENLO PARK, CALIF. — Khosla Ventures, a venture capital firm based in Menlo Park, has made a significant investment in Nu-Tek Salt, L.L.C., Nu-Tek announced Feb. 28. Nu-Tek, based in Minnetonka, Minns., is a maker of enhanced potassium chloride options aimed at helping companies reduce sodium in their products.

Nu-Tek described the Khosla transaction as a “major partnership” and the addition of an equity position in the company.

“This investment will be used to increase infrastructure and overall capacity and accommodate growing client and market needs,” Nu-Tek said. “The increase in production of Nu-Tek Salt’s improved potassium chloride solution is being made to meet the demand of food companies searching for unprecedented reduction in sodium levels.”

Khosla manages a fund supporting early- and late-stage investments and a seed fund for developing very early-stage experiments.

“We focus on next-generation energy projects, new materials, mobility, the Internet and silicon technology,” according to Khosla.

The firm was established in 2004 by Vinod Khosla, who was a co-founder and chief executive officer of Sun Microsystems. Mr. Khosla also spent time as a general partner at Kleiner Perkins.

Khosla Ventures focuses on entrepreneurial ventures in clean technology areas such as biorefineries for energy and bioplastics, solar, energy storage, agriculture, food and other cutting edge technologies as well as traditional venture areas like the Internet, computing, mobile and silicon technology arenas.

“We are excited to partner with Nu-Tek Salt and the opportunities that their unique, patented sodium-reduction technology will be able to bring to this rapidly growing industry” Mr. Khosla said.

Tom Manuel, c.e.o. of Nu-Tek, said the Khosla partnership gives the ingredient company the chance to capitalize on the rapidly growing interest in effective ways to reduce sodium in food products.

“This great partnership with Khosla Ventures will allow us to expand our capacity for our current customers and take advantage of the growing sodium-reduction market,” he said. “With our improved potassium chloride technology, we are able to provide unmatched lower-sodium alternatives to our customers in a cost-effective manner while maintaining the taste, flavor and functionality historically seen in processed foods.”

According to Nu-Tek, its patented, one-to-one solution specializes in processed meat, bakery and dairy applications “while offering food companies a healthier product for consumers, without changing functionality or taste.”